Mike's Memo

Welcome to a new year of "Mike's Memo," an update on what's happening in the 48th Legislative District, the State Capitol, and the progress on my "Promise to Pennsylvania," a pledge to advance government reforms, enact meaningful lawsuit abuse reform, eliminate wasteful state spending, and cut taxes. If you haven't done so already, please take a few moments to visit my website at www.senatorfolmer.com to learn more about issues that may affect you and your family.

Week of February 15, 2010

Governor's Budget Proposal

Last week, Governor Rendell presented to a joint session of the legislature his final state spending plan. The $29 billion plan increases spending by 4.1 percent, despite an estimated $500 million revenue shortfall.

The plan also:

• increases pre-K-12 education spending by $448 million ($355 million is for increases in K-12 basic public education subsidies;

• Reduces the Corporate Net Income Tax (CNI) from 9.99 percent to 8.99 percent through "combined reporting;"

• Imposes taxes on smokeless tobacco and cigars; and

• Establishes a new severance tax on natural gas extraction (Marcellus Shale).

The Governor also proposed reducing the sales tax rate from 6 percent to 4 percent, but expanding the tax to an additional 74 items. Items currently exempt from the sales tax, but taxable under the governor's proposal, include:

• Personal hygiene products

• Residential telephones and basic television

• Caskets and burial vaults

• Magazines

• Flags

• Candy/gum

• Dry-cleaning and laundry services

• Wrapping and packing supplies

• Water and sewer services

If the legislature were to pass the proposed budget plan as is, Pennsylvania taxpayers would be spending $920 for each second of the year. This simply is too much for the taxpayer to bear.

Appropriations Committee Hearings

The full Senate will be in recess while the Senate Appropriations Committee conducts hearings on the Governor's proposed 2010 – 2011 budget. For a complete list of hearings, click here.

Bills Sent to Governor

The full Senate unanimously approved a number of measures that are awaiting action by the Governor:

• Senate Bill 125 - makes it an offense to possess ephedrine with the intent of manufacturing methamphetamine and

• House Bill 1551 - changes in the Crane Operator Licensure Act as it relates to "grandfather" licenses

Senate Sends Bills to House

The full Senate unanimously approved a number of measures that are now in the House:

• Senate Bills 908 to 913 - a package of local government measures and

• Senate Bill 960 - changes in the composition of the State Veterans' Commission

For more information on these issues or other legislative and state topics, or if you are unable to open the bill links, visit the Pennsylvania General Assembly website at www.legis.state.pa.us. You may also want to visit "News for Constituents", a comprehensive look into various issues affecting Pennsylvanians across the Commonwealth.

Please feel free to contact me at any time on state-related issues that are of concern to you. I may be reached through e-mail at mfolmer@pasen.gov, my website, or any one of my offices listed below.